First, is the weber kettle grill going to work for everyday for, ie..steaks, burgers,beer can chicken, basically everyything i use my LP unit for?
Yes - I have owned a Weber Kettle for years and use it for all of the above. The only thing you will lose from your gasser is convinence. It will take longer to light up some charcoal than fire up a gas grill. Not that it's a big problem, just wanted to let you know.
what type of charcoal people are using?
I use Kingsford only. Other use lump (natural) charcoal. I haven't used them myself, but I have heard that cheaper charcoal may burn too quick, not light, have a funny taste, etc. I think most people use Kingsford and are very happy with the results.
Can you use wood chips in this unit to get a smokey flavor?
Yes you can. Just throw them right on the hot coals.
have to assume it doesnt come with anything, ie...charcoal holder/seperator, thermometer? cover? anything?
It comes with a vinyl cover. I seem to replace mine about one a year ($10.00) (it always rips on top by the handle). I bought a gas grill thermo at Home Depot about 4 years ago for $20.00. It fits perfectly in one of the top vent holes. No drilling necessary. Charcoal holders, a hinged grate (for adding coals for longer cooks), and the tool holder are the other accessories I find helpful. You will also need a Chimney (for starting the charcoal). DO NOT USE LIGHTER FLUID!!! The chimney lights the charcoal with a couple pieces of newspaper. No lighter fluid taste on your food!! I did also get the side work table, but it isn't that conveinient. They don't make a cover that accounts for the side table so you have to take it down to cover the grill. I just never end up using it.
Take the plunge. You won't regret it. The Kettle is a great grill.